But he also said it is very hard to spot imbalances that may be brewing in the financial sector. "I think October is a live meeting, clearly there is the potential that the data coming in, in advance of the October meeting will be sufficient we have a lot more in December", he said following a speech to a university association in Orlando, Florida. Meanwhile, James Bullard, the president of the St. Louis Fed stated that the Federal Reserve should gradually raise interest rates. The main reason behind the rise in gold prices is the expectations which hint that Federal Reserve is not likely to raise the USA interest rates any time soon. Yet in her press conference following the Fed's September meeting, Yellen spoke at length about inflation, going so far as to say the Fed's credibility rests on getting inflation back to its goal of 2%. "From the currency side and also from the positioning side, the gold price is getting a few support", said Julius Baer analyst Carsten Menke. While US unemployment, now at 5.1 percent is close to full employment, inflation remains well below the Fed target rate of 2 percent. Brainard stated that considering inflation and wage development within the United States of America remain weak, this seemed to be a time "for watching and waiting", and not risking a rate hike that the Fed might have to reverse at a later stage. Fed. Gov. Daniel Tarullo, in an interview with CNBC, said the so-called Phillips Curve has not been working for the last 10 years. "The rhetoric over gold, particularly out of the States, has been that no move on interest rates is positive for gold". This connection will play on the minds of the FOMC members even though Fischer suggests that even with two disappointing payroll reports the job market's prospects for further improvement is looking good. Bullard's comments and call for higher rates and a return to "orthodox" monetary policy highlighted the breadth of the divide at the US central bank over how to respond to signs of weak global demand. Last week, emerging market currencies and stocks gained tremendously as markets responded to the perceived delay in higher U.S. interest rates. The federal funds rate has been near zero percent since late 2008 in an attempt to stimulate growth by making it more attractive to borrow than save. Bullion prices have rebounded from a five-year low in July as investors see less chance of higher USA borrowing costs this year.

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